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Fluor (FLR) Secures 30-Month Work Extension in Piketon, Ohio
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Fluor Corporation (FLR - Free Report) announced that the U.S. Department of Energy has extended the tenure of decontamination and decommissioning contract on the existing Portsmouth Gaseous Diffusion Plant (“GDP”) in Piketon, OH. The deal is extended for an additional 30 months and Fluor will book its share of the approximately $850 million contract value in the third quarter of 2018.
Fluor, together with BWX Technologies, Inc. (BWXT - Free Report) and Jacobs Engineering Group Inc. , will execute the contract as Fluor-BWXT Portsmouth, LLC, a Fluor-led partnership company.
Per the deal, Fluor-BWXT will provide deactivation, demolition and disposal of all GDP facilities, process-related ancillary facilities, along with environmental remediation, uranium stewardship, and community outreach programs. The deal was started as a five-year work on Mar 28, 2011, which was extended in April 2016 for 30 months.
Contract Wins to Bolster Government Business
Fluor enjoys a solid track record of contracts, and management remains optimistic about the continuation of this trend in the future, which is expected to drive the company’s growth.
The company’s Government segment, accounting for more than 17% of total revenues, has been performing well courtesy of a solid track record of contracts. Over the past few quarters, major wins in the government business have allowed Fluor to expand long-term recurring revenue opportunities.
Revenues at the Government segment soared 45% year over year to $2.19 billion in the first half of 2018. The business received new awards of $785 million in the second quarter, including task orders for LOGCAP IV in Afghanistan. The company’s backlog was $2.3 billion as of Jun 30, 2018.
In July, Fluor’s marine propulsion business, Fluor Marine Propulsion LLC, secured a contract from the U.S. Navy for naval nuclear propulsion work at the Naval Nuclear Laboratory. The contract is worth $1.22 billion and incorporates options, which if exercised, would bring the cumulative estimated value of this contract to $13.1 billion.
Share Price Performance
Shares of Fluor, a Zacks Rank #1 (Strong Buy) company, have outperformed the industry over the past year. Its shares have gained 38.7% in the said time frame compared with the industry’s growth of 2.4%. The outperformance was backed by a solid earnings surprise history, having surpassed the consensus mark in three of the past four quarters, with the average being 3.3%. Earnings estimates for 2018 and 2019 have also been trending upward over the past 60 days, reflecting analysts’ optimism surrounding the company’s growth prospects. You can see the complete list of today’s Zacks #1 Rank stocks here.
Despite intense competition from industry peers like KBR, Inc. (KBR - Free Report) and others, long-term prospects of Fluor remain impressive on the back of strong end-market potential.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Fluor (FLR) Secures 30-Month Work Extension in Piketon, Ohio
Fluor Corporation (FLR - Free Report) announced that the U.S. Department of Energy has extended the tenure of decontamination and decommissioning contract on the existing Portsmouth Gaseous Diffusion Plant (“GDP”) in Piketon, OH. The deal is extended for an additional 30 months and Fluor will book its share of the approximately $850 million contract value in the third quarter of 2018.
Fluor, together with BWX Technologies, Inc. (BWXT - Free Report) and Jacobs Engineering Group Inc. , will execute the contract as Fluor-BWXT Portsmouth, LLC, a Fluor-led partnership company.
Per the deal, Fluor-BWXT will provide deactivation, demolition and disposal of all GDP facilities, process-related ancillary facilities, along with environmental remediation, uranium stewardship, and community outreach programs. The deal was started as a five-year work on Mar 28, 2011, which was extended in April 2016 for 30 months.
Contract Wins to Bolster Government Business
Fluor enjoys a solid track record of contracts, and management remains optimistic about the continuation of this trend in the future, which is expected to drive the company’s growth.
The company’s Government segment, accounting for more than 17% of total revenues, has been performing well courtesy of a solid track record of contracts. Over the past few quarters, major wins in the government business have allowed Fluor to expand long-term recurring revenue opportunities.
Revenues at the Government segment soared 45% year over year to $2.19 billion in the first half of 2018. The business received new awards of $785 million in the second quarter, including task orders for LOGCAP IV in Afghanistan. The company’s backlog was $2.3 billion as of Jun 30, 2018.
In July, Fluor’s marine propulsion business, Fluor Marine Propulsion LLC, secured a contract from the U.S. Navy for naval nuclear propulsion work at the Naval Nuclear Laboratory. The contract is worth $1.22 billion and incorporates options, which if exercised, would bring the cumulative estimated value of this contract to $13.1 billion.
Share Price Performance
Shares of Fluor, a Zacks Rank #1 (Strong Buy) company, have outperformed the industry over the past year. Its shares have gained 38.7% in the said time frame compared with the industry’s growth of 2.4%. The outperformance was backed by a solid earnings surprise history, having surpassed the consensus mark in three of the past four quarters, with the average being 3.3%. Earnings estimates for 2018 and 2019 have also been trending upward over the past 60 days, reflecting analysts’ optimism surrounding the company’s growth prospects. You can see the complete list of today’s Zacks #1 Rank stocks here.
Despite intense competition from industry peers like KBR, Inc. (KBR - Free Report) and others, long-term prospects of Fluor remain impressive on the back of strong end-market potential.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>